Brazil is still skating in relation to the international trend. The three largest ESG investment managers look after less than R$50 billion ($8.9 bn). Two of them have funds that do not exclude polluting industries, although they include ESG data to decide their investments. Other local investors have also begun to realize that ESG issues had major financial implications.
A survey conducted by FecomercioSP shows that 72% of Brazilians have changed their consumption habits in the last six months as a result of the pandemic. The sectors most impacted, i.e., those whose consumers reduced purchases, were clothing and footwear (42%), tourism trips (30%), and physical activities (27%).
Even the pandemic and the economic crisis, Brazil’s innovation ecosystem is heading for its best year in history. According to data from Distrito, there were 100 startups acquisitions between January and September, surpassing the years 2018 and 2019. The total volume of contributions already stands at $2.2 bn, completing 82% of what was injected into the market in the entire year 2019.
The stock of bank credit for micro, small and medium-sized enterprises (MSMEs) reached an annual growth rate of 28% in September, driven by the set of initiatives the government took to provide lines of funding to this segment during the pandemic.
Source: Valor Investe
Atlas Renewable Energy has secured a $67 mm loan from IDB Invest, a member of the Inter-American Development Bank Group (IDB), and Norway’s DNB Bank ASA to finance the construction of the 187 MWp Jacarandá photovoltaic plant in the municipality of Juazeiro, Bahia.
Source: Energia Hoje
Data published by IBGE show how difficult it is to maintain an active business in Brazil. One in four companies have managed to stay in business for over 10 years. According to the survey, of the approximately 889,500 companies created in 2008, only 225,000 were still operating in 2018. In other words, only 25.3% of the companies managed to stay in business for more than a decade.
BNDES approved funding of R$21.9 million ($3.9 mm) to Geo Elétrica Tamboara to expand project to produce electricity from biogas generated by the vinasse. The technology developed by the company is a pioneer in the use of waste from the sugar-alcohol sector and can contribute to expanding the supply of clean energy in the country and reducing carbon emissions.
Source: Portal do Agronegocio
Generator awaits definition of the regulations with the regulatory adjustments to spread hybrid plants in the country. As soon as the hybrid plants are normalised, AES Tiete already has plans to start selling solar projects in its wind farms.
Source: Energia Hoje
Eletrobras’ shareholders’ meeting approved a capital increase of R$1.88 bn ($377 mm) for its subsidiary Eletronuclear. According to the company, the operation will take place through the conversion of advance credits for a future capital of R$850 mm ($151 mm) and the conversion of financing credits in the amount of R$1.035 bn ($178 mm), both belonging to Eletrobras.
Source: Money Times
Brazil’s tourism sector turnover was R$70.4 billion from January to August 2020, a reduction of 33.6% compared to the same period in 2019. The survey is by Fecomercio-SP, based on data from IBGE. In the period analysed, the sector’s negative result was boosted by the drop in air travel (68.8% retraction) and by accommodation and food services (43.2% decrease).
Source: Agencia Brasil